Regulation Correspondent, Europe
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Jun 11, 2015

Competitiveness concerns limit ambition in UK’s fair markets review

LONDON, June 11 (Reuters) – To what extent can a $5 trillion
a day market be fair and transparent when a third of the
trading is done by just two banks?

That’s a question critics say went unasked and therefore
unanswered in Britain’s review of fixed income, currency and
commodity (FICC) markets, aimed at learning from the interest
and foreign exchange rate-rigging scandals that have cost banks
billions of pounds in fines.

Jun 10, 2015

UK clamps down on markets after trader scandals

LONDON, June 10 (Reuters) – Britain announced plans to clamp
down on abuse in financial markets on Wednesday after a string
of scandals that sullied the reputation of the financial system
and have so far cost banks $19 billion in fines.

Under the proposals, criminal penalties currently in place
for insider trading in shares would be extended to fixed-income,
currency and commodity (FICC) markets with jail sentences for
offenders lengthened to up to 10 years.

Jun 10, 2015

Regulators see slow progress on who pays for failed clearing house

LONDON (Reuters) – Global regulators have yet to agree on who would pay the trillions of dollars that would be needed to bail out any failed clearing house for derivatives, a senior European Commission official said on Friday.

While policymakers don’t want taxpayers to rescue clearers, central banks like the Bank of England and European Central Bank have said they would offer backstops to clearing houses in emergencies.

Jun 9, 2015

Western stock exchanges look to China for market growth

LONDON, June 9 (Reuters) – China offers better growth
prospects for stock and derivatives exchanges as making money in
mature western markets becomes tougher due to overcapacity, top
bourse officials said on Tuesday.

“Clients are really trying to get access to Asia and China
right now,” Jeff Sprecher, chairman and CEO of the
Intercontinental Exchange, told the IDX derivatives
conference in London.

Jun 9, 2015

Regulators focus on leverage ratio fallout in derivatives market

By Huw Jones

(Reuters) – Financial market regulators are looking at
whether new rules to ensure banks and brokers are strongly
capitalised in the wake of the financial crisis will hamper
efforts to make financial derivatives safer.

After introducing measures to make the financial system
stabler after the 2007-09 crisis, regulators are now having to
fine tune reforms to remove any conflicts and to avoid hampering
economic growth.

Jun 9, 2015

CFTC’s Massad expects deal on EU-U.S. derivatives rules

LONDON (Reuters) – The United States and European Union have made good progress on ironing out differences between their respective derivatives rules that threaten to fragment global markets, a top U.S. regulator said on Tuesday.

Timothy Massad, chairman of the U.S. Commodity Futures Trading Commission (CFTC), said both sides have resolved some key issues and hoped to reach an agreement this summer.

Jun 8, 2015

EU to propose lighter capital rules for banks to revive securitised debt

LONDON/BRUSSELS, June 8 (Reuters) – The European Commission
will propose lighter capital requirements on simple pooled debt
instruments, in a bid to free banks to use these so-called
securitisation products to help raise more funds to finance
economic growth.

Regulators imposed tough capital requirements on banks
creating securitised debt after often-complex products based on
U.S. home loans became untradable in 2007, triggering the global
financial crisis, and the sector in Europe has yet to regain
pre-crisis levels.

Jun 8, 2015

Basel watchdog proposes bank capital rule to cover interest rate risks

June 8 (Reuters) – Global banking regulators have proposed
two options for forcing banks to hold far more capital to cover
risks from rises in interest rates.

The Basel Committee, a body of banking supervisors from
nearly 30 countries, published on Monday a document for public
consultation that sets out two alternatives: a mandatory minimum
capital surcharge on banks, and a discretionary surcharge set by

Jun 7, 2015

Britain to unveil plans to clean up markets hit by rigging scandals

LONDON, June 7 (Reuters) – Britain’s regulators will unveil
plans on Wednesday that aim to clean up behaviour in the
financial markets, where banks have been fined billions of
pounds for trying to rig currencies and interest rate

The Bank of England, Treasury and the Financial Conduct
Authority will publish recommendations from their Fair and
Effective Markets Review into conduct and operation of currency,
bond and commodity markets.

Jun 5, 2015

British markets watchdog names Mark Steward as new top enforcer

LONDON/HONG KONG, June 5 (Reuters) – Britain’s markets
watchdog has appointed the Hong Kong Securities and Futures
Commission’s Mark Steward as its top enforcer, it said on

Steward has clocked up several high profile victories as
head of enforcement at the Hong Kong watchdog, including the
first criminal prosecution for insider trading in 2009, and the
first forced liquidation of a listed company for fraud in

    • About Huw

      "Huw is based in London and covers European regulatory issues and global rulemaking bodies such as the G20, Financial Stability Board, IOSCO, IASB and the Basel Committee. He has covered EU regulation in Brussels, the emergence pan-European stock markets, and has also been a Wall Street reporter in New York."
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